Track market-moving stories before they get noisy

Datasea (NASDAQ:DTSS – Get Free Report) and Fortinet (NASDAQ:FTNT – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings & Valuation This table compares Datasea and Fortinet”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Datasea $40.70 million 0.17 -$2.13 million ($0.32) -2.06 Fortinet $6.80 billion 16.86 $1.85 billion $2.84 55.03 Fortinet has higher revenue and earnings than Datasea. Datasea is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks. Analyst Recommendations This is a summary of current ratings and recommmendations for Datasea and Fortinet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Datasea 1 0 0 0 1.00 Fortinet 5 19 10 2 2.25 Fortinet has a consensus target price of $150.91, suggesting a potential downside of 3.44%. Given Fortinet’s stronger consensus rating and higher possible upside, analysts clearly believe Fortinet is more favorable than Datasea.

Profitability This table compares Datasea and Fortinet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Datasea -4.80% -88.98% -37.33% Fortinet 28.17% 191.54% 21.35% Insider and Institutional Ownership 82.1% of Datasea shares are held by institutional investors. Comparatively, 83.7% of Fortinet shares are held by institutional investors. 50.6% of Datasea shares are held by insiders. Comparatively, 17.6% of Fortinet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk Datasea has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary Fortinet beats Datasea on 14 of the 15 factors compared between the two stocks.

About Datasea (Get Free Report)

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

About Fortinet (Get Free Report)

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products. The company also provides the Fortinet Unified SASE solutions that include firewall, SD-WAN, Secure web gateway, cloud access services broker, data loss prevention, zero trust network access, and cloud security, including web application firewalls, virtualized firewalls, and cloud-native firewalls. In addition, it offers security operations solutions comprising FortiAI generative AI assistant, FortiSIEM security information and event management, FortiSOAR security orchestration, automation and response, FortiEDR endpoint detection and response, FortiXDR extended detection and response, FortiMDR managed detection and response service, FortiNDR network detection and response, FortiRecon digital risk protection, FortiDeceptor deception technology, FortiGuard SoCaaS, FortiSandbox sandboxing, FortiGuard incident response, and other products. Further, the company offers FortiGuard security services consisting of FortiGuard application security, content security, device security, NOC/SOC security, and web security services; FortiCare technical support services; and training services to customers and channel partners, as well as operates a FortiGuard Lab, a cybersecurity threat intelligence and research organization. It serves enterprise, communication and security service providers, government organizations, and small and medium-sized businesses. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.

Receive News & Ratings for Datasea Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Datasea and related companies with MarketBeat.com's FREE daily email newsletter.

Fortinet remains a Buy, driven by robust billings growth, accelerating product sales, and strong margin performance across its hybrid security model. FTNT's deferred revenue reached $7.68B, with management guiding for 25% billings growth and 19% revenue growth, underpinned by recurring service contracts. Operating leverage is evident: non-GAAP operating margin hit 38%, adjusted free cash flow margin reached 49%, and free cash flow more than tripled year-over-year.

Palo Alto Networks crushed revenue estimates and still got punished, while peers with weaker numbers barely flinched. The gap between what bulls expected and what the company delivered reveals a fault line running through the entire cybersecurity rally.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Cybersecurity stocks are trading lower Wednesday morning as a marquee earnings beat drew heavy selling, and the reaction looks like a repricing of one name’s premium while sector peers move far less. The headline growth number was strong, though the metric bulls watch closest came in modestly light.

Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) stock is down 8% to $332.30 after the company reported fiscal Q4 2026 results Tuesday afternoon. The Amplify Cybersecurity ETF (NYSEARCA:HACK) is down 2% to $109.32, showing much softer selling across the sector basket. The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.1% to $706.66, leaving the large-cap tech tape barely lower on the session as Palo Alto Networks stock falls several times harder than its own sector fund.

Earnings Beat With a GAAP Swing Palo Alto Networks reported revenue of $3.41 billion, up 34% year over year and ahead of the $3.35 billion consensus. Non-GAAP EPS came in at $1.02 versus $0.98 expected, with adjusted profit of $853 million versus $673 million a year earlier. The company also announced the closing of its Console acquisition, an AI-native agentic workflow platform intended to extend Cortex.

On a GAAP basis, Palo Alto posted a net loss of $282 million, or $0.35 per share, against net income of $254 million a year earlier. The swing came from $281 million of acquired intangible amortization and a $524 million fair value change on convertible notes acquired from CyberArk. Operating cash flow at Palo Alto reached $1.357 billion in the quarter, with a full-year adjusted free cash flow margin of 38.4%.

Palo Alto Networks’ next-generation security annual recurring revenue rose 63% year over year to $9.1 billion, with nearly $1 billion of net new next-generation security ARR added in the quarter. Remaining performance obligations at Palo Alto Networks rose 34% to $21.2 billion.

Fiscal 2027 guidance from Palo Alto Networks calls for revenue of $14.1 billion to $14.2 billion, non-GAAP EPS of $4.16 to $4.19 per share against $3.84 in fiscal 2026, and NGS ARR of $11.075 billion to $11.175 billion. Adjusted free cash flow margin is guided to 38%, down from 38.4%.

ARR Deceleration Broke the Bull Case Raymond James reiterated a Market Perform rating on Palo Alto and called the results generally solid, while noting next-generation security ARR came in modestly below what it believed buy-side investors expected. Analyst Adam Tindle said the figure would have needed to reach closer to $9.15 billion to represent an accelerating beat, stating that “the beat decelerated in a very healthy environment.”

Tindle noted the ARR trajectory underpins the bull case that Palo Alto Networks is decoupling from traditional firewall comparisons and behaving like a high-growth next-generation software company. He benchmarked that growth against CrowdStrike, whose total ARR growth is running in the mid-20% range with net new ARR growth above 50%. That comparison explains why the market treated a headline beat at Palo Alto Networks as a disappointment.

CEO Nikesh Arora highlighted the company’s platform expansion in the release, citing “nearly $1 billion of Net New NGS ARR in a single quarter.” The subtext of the reaction is that the buy side had already priced that scale in, leaving Palo Alto Networks with no cushion at the current multiple.

Peer Reaction Stays Muted Meanwhile, CrowdStrike Holdings (NASDAQ:CRWD) stock is down 3% to $208.03, a much softer reaction that leaves the sector picture intact. CrowdStrike stock was up 84% year to date through Tuesday’s close, so today’s drawdown barely dents the run.

Fortinet (NASDAQ:FTNT) stock is down 3% to $157.51, a similar sympathy move consistent with sector rotation. Fortinet stock was up 104% year to date through Tuesday’s close, actually outperforming Palo Alto Networks over that stretch.

Palo Alto stock was up 97% year to date through Tuesday’s close, so a 9% reaction on a decelerating beat lines up with a group that ran hot into the earnings report. The Amplify Cybersecurity ETF’s 2% pullback captures the sector picture cleanly for the day.

What to Watch The unresolved question is whether fiscal 2027 NGS ARR guidance of 22% to 23% growth is enough to sustain the multiple Palo Alto stock carried into the earnings report. Traders can watch for sell-side revisions in the coming sessions that either endorse the guide as conservative or trim expectations further after Tuesday’s call.

The CyberArk integration progress and the newly closed Console acquisition are the operational threads to follow at Palo Alto Networks. Investors should size their positions carefully given the valuation still embedded in the stock after today’s move.

Contact [email protected] for any questions or corrections.

Fortinet Training Institute’s New Technical High School Cybersecurity Curriculum gives U.S. secondary schools a no-cost, standards-aligned entry point into a two-year cybersecurity pathway  | Source: Fortinet, Inc.

SUNNYVALE, Calif., Aug. 31, 2026 (GLOBE NEWSWIRE) -- Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced that the Fortinet Training Institute is launching free technical cybersecurity courses for students, the Technical High School Cybersecurity Curriculum, available to schools across the United States through the Security Awareness and Training Service.

“Closing the cybersecurity skills gap starts in the classroom, long before a student enters the workforce. This new curriculum allows high school students the opportunity to build foundational technical skills and knowledge and discover whether a cybersecurity career is right for them, while giving teachers a ready-to-use curriculum they don’t have to build on their own. This launch reflects our commitment to making cybersecurity education accessible to every school, and more importantly, every student, regardless of existing resources,” said Melonia da Gama, Director of Training and Learning Programs, Fortinet Training Institute.

Offered at no cost, the curriculum builds foundational knowledge and career interest while bridging toward industry certifications, giving Career and Technical Education (CTE) leaders, district technology leaders, and teachers a way to expand cybersecurity programming without straining budgets or instructional bandwidth.

The curriculum is organized in a two-course format. Each course will take a full school year, approximately 180 days, or 145 hours to complete. These two courses offer students the opportunity to develop core cybersecurity knowledge and prerequisites before learning advanced technical cybersecurity skills.

Cybersecurity 1: Foundations is the first year-long course and the entry point into Fortinet Training Institute’s two-course cybersecurity pathway for high schools. It focuses on introducing key skills and knowledge, while encouraging students to consider continuing education and cybersecurity careers.
Cybersecurity 2: Fundamentals is the second year-long course that builds on the learning from the first year. This course focuses on technical and practical cybersecurity skills, advanced cybersecurity concepts, and serves as a bridge to industry-standard cybersecurity certifications. A Foundational On-Ramp to a Two-Course Cybersecurity Pathway

School districts face growing pressure to align programs with workforce demand, but many lack affordable, standards-aligned cybersecurity content or the capacity to build courses from the ground up. Fortinet’s Technical High School Cybersecurity Curriculum closes that gap with a ready-to-implement curriculum that expands a student’s opportunities.

The curriculum is built around three core pillars:

Free, standards-aligned curriculum: Schools and districts gain access to high-quality, standards-aligned cybersecurity instruction at no cost, allowing programs to launch immediately without seeking additional funding or navigating approval delays.Ready-to-use lesson plans and instructor materials: Modular lessons, activities, and teaching materials reduce preparation time for educators, enabling teachers to deliver high-quality cybersecurity instruction with confidence, even without a deep cybersecurity background. Teachers may choose to use pieces of each lesson to supplement other course content, or teach the courses from start to finish.A no-cost implementation model: By removing financial barriers to entry, the program is designed to accelerate adoption across schools and districts of every size, helping students build foundational knowledge across networking, cryptography, endpoint security, application security, risk management, and cyber defense. Together, these elements help schools better prepare students for college coursework, industry certifications, and cybersecurity careers, while giving districts a way to demonstrate innovation and career-focused, future-ready learning to their communities.

Building Real-World Pathways: Chicago Public Schools Explores an Early Pilot

Districts building cybersecurity pathways are looking to the Technical High School Cybersecurity Curriculum to strengthen existing coursework. Chicago Public Schools (CPS), which has expanded access to the college board’s AP cybersecurity course, is among the early districts exploring Fortinet’s curriculum as a foundational resource.

As CPS’s high school computer science team grew its cybersecurity pathway, it identified a need for a curriculum that builds foundational knowledge while preparing students for more advanced coursework. Fortinet’s Technical High School Cybersecurity Curriculum progresses through networking, cryptography, endpoint security, application security, risk management, and cyber defense, closely complementing the AP cybersecurity framework and giving students a logical path to build prerequisite knowledge before or alongside the AP course. Modular lessons and flexible pacing let teachers adapt implementation to their own classrooms and schedules.

“Chicago Public Schools is committed to preparing students for high-demand careers in cybersecurity through rigorous, industry-aligned learning experiences. As we expand access to AP cybersecurity across our district, we are excited to explore Fortinet’s Technical High School Cybersecurity Curriculum as a potential resource to strengthen our pathway. Participating in an early pilot provides an opportunity for our educators to evaluate the curriculum, provide meaningful feedback, and help shape high-quality instructional resources that prepare students for both college-level coursework and future cybersecurity careers,” said Daniel Patterson, High School Computer Science Manager for Chicago Public Schools.

About Fortinet

Fortinet (NASDAQ: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Over 1 million customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.

Additional Resources

Visit fortinet.com/trust to learn about Fortinet innovation, collaboration partners, product security processes, and enterprise-grade products.Read about how Fortinet customers are securing their organizations.Learn about Fortinet’s commitment to product security and integrity, including its responsible product development and vulnerability disclosure approach and policies.Follow Fortinet on X, LinkedIn, Facebook, and Instagram. Subscribe to Fortinet on our blog or YouTube. Copyright © 2026 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIGate, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiDAST, FortiDATA, FortiDB, FortiDevice, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHSM, FortiHypervisor, FortiIdentity, FortiInsight, FortiIsolator, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPhish, FortiPoint, FortiPoints, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSAT, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSOC, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, the Linksys logo, Linksys Cognitive, Intelligent Mesh, Velop, Max-Stream, WRT and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

SummaryFortinet stock has surged over 100% in 2026, driven by robust AI-driven cybersecurity demand and strong product revenue growth.FTNT’s free cash flow, billings, and deferred revenue are strong, with gross margins near 80% and a clean balance sheet supporting aggressive buybacks.Valuation models (FCFF, FCFE, residual income) converge on an intrinsic value range of $120–150 per share, below the current ~$160 price.I rate FTNT a Hold, as current valuation embeds optimistic growth and return assumptions; a pullback or evidence of sustained high growth would increase my conviction.Editor's note: Seeking Alpha is proud to welcome KRM Insights as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.

5 Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BUG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

BUG is an ETF that has 8.14% allocation to FTNT. I hold long-term call options in my IRA.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

From a technical perspective, Fortinet (FTNT - Free Report) is looking like an interesting pick, as it just reached a key level of support. FTNT recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Shares of FTNT have been moving higher over the past four weeks, up 12%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that FTNT could be poised for a continued surge.

The bullish case solidifies once investors consider FTNT's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 13 higher, while the consensus estimate has increased too.

Investors should think about putting FTNT on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

It has been about a month since the last earnings report for Fortinet (FTNT - Free Report) . Shares have added about 12% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Fortinet due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Fortinet, Inc. before we dive into how investors and analysts have reacted as of late.

Fortinet Q2 Earnings & Revenues Beat Estimates, Increase Y/YFortinet reported second-quarter 2026 non-GAAP earnings per share (EPS) of 90 cents, beating the Zacks Consensus Estimate by 20% and rising 40.6% year over year.

Total revenues of $2.05 billion beat the consensus mark by 9.1% and increased 25.6% year over year, driven by strong demand across customer segments, industry verticals, and geographies. Growth was fueled by accelerating investment in securing AI infrastructure, the convergence of firewall, SD-WAN and SASE technologies into the company's newly defined SASE Firewall platform, and continued strength in operational technology (OT) security amid rising regulatory and critical infrastructure requirements.

Total deferred revenues (current plus long-term portions combined) came in at $7.68 billion, while the current portion was $3.84 billion as of June 30, 2026.

Total billings increased 33.4% year over year to $2.37 billion, led by 34% growth in secure networking, more than 55% growth in OT, 35% growth in Unified SASE and 25% growth in AI-driven security operations.

FTNT's Q2 in DetailSegment-wise, Product revenues increased 51.9% year over year to $773 million, representing 37.7% of total revenues. The acceleration was driven by strong FortiGate unit growth and higher average selling prices as customers shifted toward higher-performing models, along with customer investments to secure AI workloads and support AI data center buildouts.

Service revenues of $1.27 billion grew 13.7% year over year, accounting for 62.3% of total revenues, with growth improving from the prior quarter. The first quarter of 2026 marked the trough for service revenue growth, with a positive trajectory expected going forward as accelerating product revenue feeds through to attached services. Service billings accelerated to 26% growth and total deferred revenues grew 17%. FortiSASE adoption within the large enterprise installed base rose to 90%, with FortiSASE billings growing more than 100% year over year, benefiting from expansion sales, competitive replacements and new large enterprise wins.

Margins of FTNTTotal GAAP gross margin was 80.2%, contracting 50 basis points (bps) year over year. Non-GAAP gross margin came in at 80.9%, contracting 70 bps year over year but exceeding the high end of guidance.

GAAP operating margin expanded 560 bps year over year to 33.7% in the second quarter. On a non-GAAP basis, operating margin expanded 490 bps to a second quarter record of 38%, reflecting stronger than expected revenue growth, disciplined cost management and growing efficiencies from internal AI initiatives.

FTNT's Balance Sheet & Cash FlowFortinet exited the second quarter of 2026 with cash and cash equivalents and short-term investments of $4.07 billion, up from $3.29 billion reported at the end of the first quarter of 2026.

Cash flow from operations was $1.04 billion for the second quarter of 2026, up from $451.9 million in the prior year quarter, an increase of 130.9%. Free cash flow of $965.6 million grew 239.9% year over year from $284.1 million in the prior year quarter, reflecting improved linearity, higher billings and strong working capital discipline, representing a free cash flow margin of 47.2%. Adjusted free cash flow reached $995.9 million, up 132.7% year over year, representing a margin of 48.6%.

The company repurchased 1.9 million shares of common stock for $146 million during the second quarter, bringing year-to-date repurchases to 12.5 million shares for $973 million, at an average price of approximately $78 per share. The remaining share repurchase authorization stands at approximately $766 million.

FTNT's Q3 & 2026 GuidanceFortinet expects third-quarter revenues in the range of $2.01-$2.10 billion. Billings are estimated in the range of $2.25-$2.35 billion. The non-GAAP gross margin is expected in the range of 79-81%, while the non-GAAP operating margin is anticipated between 35-37%. Non-GAAP EPS is projected in the range of 83-87 cents.

For 2026, FTNT raised its outlook and now predicts revenues in the range of $8.02-$8.18 billion (up from prior $7.71-$7.87 billion). Service revenues are projected in the range of $5.18 to $5.22 billion. Billings are expected in the range of $9.35-$9.55 billion (up from prior $8.8 to $9.1 billion). The non-GAAP gross margin is expected in the range of 79-81% and the operating margin is projected in the band of 35-37%. Non-GAAP EPS is anticipated to be between $3.41 and $3.47 (up from prior $3.10-$3.16).

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 13.51% due to these changes.

VGM ScoresCurrently, Fortinet has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fortinet has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerFortinet belongs to the Zacks Security industry. Another stock from the same industry, Varonis Systems (VRNS - Free Report) , has gained 12.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Varonis reported revenues of $180.02 million in the last reported quarter, representing a year-over-year change of +18.3%. EPS of $0.04 for the same period compares with $0.03 a year ago.

For the current quarter, Varonis is expected to post earnings of $0.02 per share, indicating a change of -66.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Varonis. Also, the stock has a VGM Score of D.

Beacon Pointe Advisors LLC bought a new position in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 381,385 shares of the software maker’s stock, valued at approximately $58,588,000. Beacon Pointe Advisors LLC owned approximately 0.05% of Fortinet as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Fortinet during the second quarter worth about $9,561,650,000. State Street Corp lifted its stake in shares of Fortinet by 1.6% in the third quarter. State Street Corp now owns 29,660,558 shares of the software maker’s stock worth $2,493,860,000 after acquiring an additional 477,397 shares during the period. Norges Bank bought a new stake in Fortinet in the fourth quarter valued at approximately $1,152,917,000. Bank of New York Mellon Corp increased its position in Fortinet by 6.6% during the 4th quarter. Bank of New York Mellon Corp now owns 14,504,597 shares of the software maker’s stock valued at $1,151,810,000 after purchasing an additional 893,190 shares during the period. Finally, First Trust Advisors LP raised its holdings in Fortinet by 45.5% during the 1st quarter. First Trust Advisors LP now owns 11,506,173 shares of the software maker’s stock worth $940,284,000 after purchasing an additional 3,598,487 shares during the last quarter. Institutional investors own 83.71% of the company’s stock.

Wall Street Analyst Weigh In FTNT has been the topic of several recent analyst reports. Compass Point set a $100.00 target price on shares of Fortinet in a report on Monday, May 4th. Truist Financial set a $183.00 price objective on Fortinet and gave the company a “buy” rating in a research note on Tuesday, July 21st. Stephens set a $115.00 target price on Fortinet and gave the company an “equal weight” rating in a research report on Thursday, May 7th. JPMorgan Chase & Co. increased their price target on Fortinet from $73.00 to $75.00 and gave the stock an “underweight” rating in a report on Thursday, May 7th. Finally, DZ Bank lowered shares of Fortinet from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, twenty have assigned a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $150.91.

View Our Latest Report on FTNT Fortinet Trading Down 3.9% FTNT opened at $166.00 on Friday. Fortinet, Inc. has a fifty-two week low of $73.55 and a fifty-two week high of $173.89. The firm has a market capitalization of $121.80 billion, a PE ratio of 58.45, a P/E/G ratio of 3.28 and a beta of 1.07. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.28 and a quick ratio of 1.19. The company’s 50-day moving average is $157.68 and its 200 day moving average is $120.40.

Fortinet (NASDAQ:FTNT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.15. The firm had revenue of $2.05 billion during the quarter, compared to analyst estimates of $1.89 billion. Fortinet had a return on equity of 191.54% and a net margin of 28.17%.The company’s revenue for the quarter was up 25.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.64 EPS. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, research analysts predict that Fortinet, Inc. will post 3.05 earnings per share for the current fiscal year.

Key Headlines Impacting Fortinet Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Fortinet Federal, a wholly owned subsidiary, earned CMMC Level 2 certification after validating 110 NIST SP 800-171 controls. The certification could improve Fortinet’s credibility with U.S. government agencies and defense contractors seeking compliant cybersecurity providers. Fortinet Federal’s New CMMC Level 2 Certification Positive Sentiment: Analysts continue to point to platform adoption, artificial-intelligence security products, product expansion and CMMC-related demand as potential growth drivers across enterprise and government markets. Fortinet Stock Surges on Security Platform Momentum Positive Sentiment: A new multi-year sponsorship agreement with Stanford Athletics supports Fortinet’s brand visibility, although the financial impact is likely modest compared with its core business. Stanford Athletics and Fortinet Sponsorship Neutral Sentiment: Fortinet recently moved above its 20-day moving average, signaling short-term technical momentum. However, technical support can also encourage profit-taking after a large advance. Fortinet Crosses Above Its 20-Day Moving Average Negative Sentiment: Valuation is a key overhang. With the stock near its annual high and trading at roughly 58 times earnings, investors may be demanding continued strong execution, leaving limited room for disappointment. Fortinet Valuation Leaves Limited Margin of Safety Negative Sentiment: Insider-trading data shows executives made no open-market purchases and reported multiple sales over the past six months. In addition, the reported median analyst price target of $115 is below recent trading levels, reinforcing concerns that expectations may have become excessive. Insider Activity In other Fortinet news, CEO Ken Xie sold 161,482 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.63, for a total transaction of $507,568.23. Following the transaction, the vice president directly owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. This represents a 0.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 329,142 shares of company stock valued at $50,731,178. 17.60% of the stock is currently owned by corporate insiders.

About Fortinet (Free Report)

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.

Recommended Stories Five stocks we like better than Fortinet 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?

Receive News & Ratings for Fortinet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fortinet and related companies with MarketBeat.com's FREE daily email newsletter.

B. Metzler seel. Sohn & Co. AG bought a new position in Fortinet, Inc. (NASDAQ:FTNT – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 30,049 shares of the software maker’s stock, valued at approximately $4,616,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Fairtree Asset Management Pty Ltd purchased a new position in Fortinet during the second quarter valued at approximately $4,439,000. Kilter Group LLC purchased a new stake in shares of Fortinet in the second quarter worth $41,000. Portfolio Design Labs LLC bought a new stake in Fortinet during the second quarter valued at about $365,000. Reliant Investment Partners LLC purchased a new position in shares of Fortinet in the second quarter valued at about $234,000. Finally, SGL Investment Advisors Inc. bought a new position in Fortinet in the 2nd quarter worth approximately $353,000. Institutional investors own 83.71% of the company’s stock.

Fortinet Trading Up 1.8% FTNT opened at $153.51 on Friday. The stock’s fifty day moving average is $156.24 and its two-hundred day moving average is $117.61. The company has a market capitalization of $112.63 billion, a P/E ratio of 54.05, a PEG ratio of 2.86 and a beta of 1.07. Fortinet, Inc. has a 52 week low of $73.55 and a 52 week high of $172.09. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32.

Fortinet (NASDAQ:FTNT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a return on equity of 191.54% and a net margin of 28.17%.The business had revenue of $2.05 billion during the quarter, compared to analysts’ expectations of $1.89 billion. During the same period in the prior year, the business earned $0.64 EPS. The business’s revenue for the quarter was up 25.6% compared to the same quarter last year. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Analysts forecast that Fortinet, Inc. will post 3.05 earnings per share for the current year. Insider Buying and Selling at Fortinet In other news, CEO Ken Xie sold 161,482 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total transaction of $26,266,662.12. Following the transaction, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Michael Xie sold 3,121 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.63, for a total value of $507,568.23. Following the transaction, the vice president directly owned 9,918,360 shares in the company, valued at $1,613,022,886.80. This represents a 0.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 329,142 shares of company stock worth $50,731,178 in the last ninety days. Insiders own 17.60% of the company’s stock.

Wall Street Analyst Weigh In FTNT has been the subject of a number of research analyst reports. BTIG Research increased their price objective on shares of Fortinet from $186.00 to $203.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Scotiabank reissued a “sector perform” rating and set a $163.00 price objective on shares of Fortinet in a report on Thursday, July 30th. HSBC downgraded shares of Fortinet from a “hold” rating to a “reduce” rating and set a $102.00 price objective for the company. in a report on Monday, June 29th. Piper Sandler reaffirmed a “neutral” rating and set a $175.00 price objective (up from $110.00) on shares of Fortinet in a report on Thursday, July 30th. Finally, DZ Bank downgraded Fortinet from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, nineteen have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, Fortinet has an average rating of “Hold” and a consensus price target of $150.91.

Get Our Latest Stock Report on Fortinet

Fortinet Profile (Free Report)

Fortinet, Inc (NASDAQ: FTNT) is a multinational cybersecurity company that develops and delivers integrated security solutions for enterprise, service provider and government customers worldwide. Founded in 2000 and headquartered in Sunnyvale, California, the company was co‑founded by Ken Xie and Michael Xie. Ken Xie serves as chairman and chief executive officer, and the company operates through a global sales, channel and services organization to support customers across the Americas, EMEA and Asia‑Pacific.

Fortinet’s product portfolio centers on network security appliances and software, with its FortiGate next‑generation firewalls and the FortiOS operating system forming a core platform.

Read More Five stocks we like better than Fortinet Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?

Receive News & Ratings for Fortinet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fortinet and related companies with MarketBeat.com's FREE daily email newsletter.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Fortinet (FTNT - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this network security company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Fortinet is 42.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 23.4% this year, crushing the industry average, which calls for EPS growth of 9.5%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, Fortinet has an S/TA ratio of 0.74, which means that the company gets $0.74 in sales for each dollar in assets. Comparing this to the industry average of 0.44, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Fortinet is well positioned from a sales growth perspective too. The company's sales are expected to grow 19% this year versus the industry average of 18.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Fortinet have been revising upward. The Zacks Consensus Estimate for the current year has surged 8.8% over the past month.

Bottom LineFortinet has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Fortinet is a potential outperformer and a solid choice for growth investors.

Key Takeaways Stocks like FTNT delivered strong Q2 growth as AI-driven cyber threats intensified demand. PANW's revenues rose 31%, while Next-Generation Security ARR surged 60% to $8.1 billion.ETFs like CIBR offer diversified exposure to cybersecurity's structural growth trend. This year’s second-quarter earnings cycle has delivered a clear message to investors: cybersecurity is no longer a defensive bet — it's a growth imperative. As enterprises grapple with an unprecedented surge in AI-driven cyber threats, which have jumped 89% from last year, according to CrowdStrike’s 2026 Threat Hunting Report, securing digital infrastructure has become a non-negotiable operational priority. 

This reality has created a powerful tailwind for industry leaders like Palo Alto Networks (PANW - Free Report) , which has not only surpassed analyst expectations but also demonstrated accelerating momentum. Notably, the Nasdaq CTA Cybersecurity Index has soared 36.5% year to date, outperforming the broader Nasdaq Index’s 13% return over the same period. 

For investors looking to capitalize on this secular growth trend, the recent market performance could make cybersecurity stocks and the exchange-traded funds (ETFs) that hold them compelling entry points.

The following section breaks down the standout financial performances delivered by top cybersecurity players in the second quarter and illustrates how their underlying strength powers broader ETF growth.

Q2 Performance Breakdown: Cybersecurity LeadersThe recent second-quarter earnings cycle highlighted strong top and bottom-line growth among leading cybersecurity companies, driven by an increasingly challenging AI-enabled threat environment:

CrowdStrike (CRWD - Free Report) reported a 26% year-over-year increase in revenues to $1.19 billion for the first quarter of fiscal 2027, while Annual Recurring Revenue (ARR) reached $5.51 billion as of April 30, 2026. Its adjusted earnings per share improved a solid 50.7% year over year, fueled by rapid customer adoption of its AI-powered Falcon platform. 

It became the only cybersecurity company selected as a launch partner in both Anthropic’s Project Glasswing and OpenAI’s Trusted Access for Cyber (TAC) programs. The stock gained a solid 94.1% during the April-June quarter.

Palo Alto Networks posted third-quarter fiscal 2026 revenue growth of 31% to $3 billion, while its Next-Generation Security ARR surged 60% to $8.1 billion. CEO Nikesh Arora highlighted the latest advancements at the AI frontier, leading to increased demand for cybersecurity as the primary growth driver for the company.  

Its remaining performance obligation (RPO) grew 36% year over year to $18.4 billion in the last reported quarter. The stock surged 112.2% during the second quarter of 2026.

Fortinet (FTNT - Free Report) delivered a standout performance in the second quarter of 2026, crushing estimates with its quarterly revenues of $2.05 billion, up 26% year over year. A 52% jump in its product revenues underscored massive demand for hardware and software upgrades designed to manage complex AI network traffic.

Moody’s Ratings has upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1, the highest rating of any public cybersecurity company. The stock has rallied 89.3% during the second quarter.

AI Threat Outlook: Why ETFs Offer a Better Entry StrategyAs generative AI lowers the technical barrier for cybercriminals to launch sophisticated phishing schemes, zero-day exploits, and automated ransom attacks, cybersecurity spending is shifting from discretionary IT expenses to critical utility-like infrastructure. 

As the threat landscape evolves at machine speed, a long-term demand scenario is there for the sector. To this end, some market experts believe that cybersecurity companies have the potential to experience consistent outsized revenue growth, even in an economic downturn.

Against this backdrop, the combination of robust second-quarter earnings and an intensifying AI threat landscape presents an ideal entry point for cybersecurity ETFs. While individual stock picking exposes investors to company-specific volatility — such as post-earnings swings and execution risks — cybersecurity ETFs offer diversified, basket exposure to the primary beneficiaries of this structural growth trend without single-stock risk.

4 Cybersecurity ETFs to BuyConsidering the aforementioned discussion, investors may add the following ETFs to their portfolios:

First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report)

With $15.56 billion in net assets, the fund provides exposure to 42 companies primarily involved in developing, implementing, and managing security protocols for private and public networks, computers, and mobile devices to protect data integrity and network operations. PANW holds the first spot in this fund, with 9.74% weightage, while CRWD holds the second spot with 8.54% weightage. FTNT holds the third position with 8.25% weightage. 

CIBR has risen 36.4% year to date and charges 58 basis points (bps) in fees. It traded at a good volume of 1.50 million shares in the last trading session. 

Amplify Cybersecurity ETF (HACK - Free Report)

This fund, with net assets worth $2.97 billion, offers exposure to 23 companies actively involved in providing cybersecurity solutions that include hardware, software, and services. PANW holds the first spot in this fund with 6.57% weightage, while CRWD holds the second spot with 5.62% weightage. FTNT holds the sixth spot with 5.01% weightage. 

HACK has soared 43.5% year to date and charges 60 bps in fees. It traded at a volume of 0.21 million shares in the last trading session. 

Global X Cybersecurity ETF (BUG - Free Report)

This fund, with net assets worth $1.51 billion, offers exposure to 31 companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. PANW holds the first spot in this fund, with 8.02% weightage, while CRWD holds the third spot with 7.34% weightage. FTNT holds the fourth spot with 7.20% weightage. 

BUG rallied 38.2% year-to-date and charges 50 bps in fees. It traded at a volume of 0.97 million shares in the last trading session. 

iShares Cybersecurity and Tech ETF (IHAK - Free Report)

This fund, with net assets worth $1.08 billion, offers exposure to 35 companies at the forefront of cybersecurity across developed & emerging markets. Qualys holds the first spot in this fund, with 5.90% weightage, while PANW holds the third spot with 4.89% weightage. CRWD holds the sixth spot with 4.51% weightage. 

IHAK has surged 36.7% year to date and charges 47 bps in fees. It traded at a volume of 0.12 million shares in the last trading session. 
 

Key Takeaways Fortinet adds AI runtime protection, automated validation and agent security through its Virtue AI deal.Virtue AI extends protection across models, applications and agentic systems in development and runtime.Virtue AI adds cross-selling potential as enterprises consolidate AI security spending with fewer vendors. Fortinet (FTNT - Free Report) is strengthening its AI security portfolio with the acquisition of Virtue AI, expanding its capabilities beyond traditional network protection toward securing autonomous AI systems. The deal adds AI runtime protection, automated validation and agent security to Fortinet’s existing AI security offerings, potentially positioning the company to capture a broader share of enterprise spending as AI deployments move into production.

Virtue AI complements Fortinet’s FortiAIGate, which protects large language models from risks including prompt injection, data leakage and model poisoning. Its technology extends protection across AI models, applications and agentic systems throughout development and runtime. Capabilities include automated red-teaming across more than 50 sandboxed environments and 14 high-stakes domains, continuous validation across model updates and policy changes and real-time guardrails covering text, images, video, audio and AI-generated code. This broader coverage could strengthen Fortinet’s ability to address the expanding security requirements associated with enterprise AI adoption.

The acquisition also builds on improving demand for Fortinet’s AI-related security offerings. In the second quarter of 2026, billings from AI-driven security operations increased 25%, supported by more than 20 AI-enabled solutions. Total revenues rose 26% year over year to $2.05 billion, while product revenues increased 52% to $773 million, indicating strong demand for security infrastructure as customers invest in AI workloads.

By combining Virtue AI's validation and runtime protection into its broader Security Fabric, Fortinet is gaining an additional avenue to cross-sell into its installed base as enterprises consolidate AI security spending with fewer platform vendors, a dynamic that could support continued momentum in the company's AI-linked growth pipeline.

How FTNT Is Placed Against PeersFortinet is competing in an AI security landscape where Palo Alto Networks (PANW - Free Report) and CrowdStrike (CRWD - Free Report) are also expanding aggressively. Palo Alto Networks is closing its roughly $25 billion CyberArk acquisition to secure agentic identity, complementing its Prisma AIRS platform. CrowdStrike is extending its Falcon platform across the AI stack, leveraging its endpoint footprint to detect unauthorized AI agents. Against these two, Fortinet's Virtue AI deal is comparatively smaller in scale but is tightly integrated with its existing FortiAIGate offering, reflecting a platform-native approach rather than the large standalone acquisitions pursued by Palo Alto Networks and CrowdStrike.

FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 96.3% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 83.6% and 19%, respectively.

FTNT’s Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 42.65, higher than the sector's average of 21.62. The company carries a Value Score of F.

FTNT’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.40 per share for 2026, which implies year-over-year growth of 23.19%.

Fortinet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet, Inc. (FTNT) Presents at Rosenblatt's 6th Annual Technology Summit: The Age of AI (Part II) Transcript

Fielder Capital Group LLC acquired a new position in Fortinet, Inc. (NASDAQ: FTNT) during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 7,702 shares of the software maker's stock, valued at approximately $1,183,000. Other institutional investors have also

The AI boom often centers on productivity – doing more and doing it faster. But AI also allows for automated attacks at record speeds.

In this article:FTNT

+2.86%

PANW

+2.32%

So, cybersecurity matters more than ever. And market players know this.

At MoneyFlows, we help investors by uncovering the leading companies in each major AI frontier. And right now, institutional money flows are highlighting two clear AI security winners.

Elite AI Cybersecurity Stocks The first cybersecurity stock to own in the age of AI is Fortinet (FTNT). This $120 billion market capitalization company delivers cybersecurity solutions to enterprises, governments, and small businesses.

The stock doubled this year; now it trades at a forward price-earnings ratio of 44.2:

FTNT is up over 100% in a year and hit a 52-week high recently. Source: MoneyFlows.com Its latest earnings report showed per-share earnings of $0.90, which easily beat estimates of $0.75.

For 2026, Fortinet projects EPS of $3.44 at the midpoint, versus prior guidance of $3.13. Equally nice, revenues guidance was raised to a midpoint of $8.1 billion against estimates of $7.81 billion.

As it stands, fiscal 2027’s EPS should hit $3.76. And by 2028, EPS climbs to $4.28.

Few companies have such a strong fundamental outlook.

This is why FTNT has been under extreme inflows (left) since early May, beginning at around $90 per share:

FTNT is up over 7,700% since Big Money’s initial outlier inflow signal in 2010. Source: MoneyFlows.com The blue bars (right) indicate the discrete times when FTNT was an elite stock in our data.

Great stocks are powered higher by unwavering institutional support. MoneyFlows spots these opportunities early.

The next best cybersecurity stock to own in the AI era is Palo Alto (PANW). The $325 billion market cap firm protects networks by stopping cyberattacks.

Like Fortinet, the stock has rewarded shareholders handsomely, gaining over 110% in 2026. That said, it’s more expensive, trading at a lofty 93 forward P/E:

As shares have gained over 110% in a year, PANW’s valuation has risen too. Source: MoneyFlows.com However, the fundamentals support this valuation.

Third-quarter earnings showed the company’s Next-Generation Security ARR is targeting $8.925 billion in sales. That would reflect year-over-year revenue growth of nearly 60%.

Of course, Big Money has been piling into PANW shares well ahead of this rosy outlook. A wall of inflows elevated the stock from $196 to its latest price of $387:

Institutions started buying PANW heavily in May; six outlier inflow signals sent shares up over 61% in a few months. Source: MoneyFlows.com And note the handful of Outlier signals (right) revealing this is a top choice in our data. This is a quality name with institutional support.

Before the Headlines Understanding institutional inflows helps you spot powerful stocks early.

Why? Because institutions tend to understand business trends ahead of the print.

It’s simple: MoneyFlows helps you spot tomorrow’s winners…today.

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

Disclosure: at the time of publication, the author holds no positions in FTNT or PANW.

Related Articles

NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs On Soft PPI DataNasdaq Index: Michael Burry Shorts AI Buyers as Nvidia Sells the ChipsUS Stock Market Forecast: S&P 500 and Nasdaq Eye BreakoutAbout the Author

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

Latest news and analysis

Key Takeaways Fortinet raised 2026 revenues, billings, service revenues and non-GAAP EPS guidance.SASE convergence, firewall refreshes and AI integration are driving broad-based demand.Fortinet's Intel collaboration aims to advance its ASIC roadmap and strengthen supply chain resilience. Fortinet, Inc. (FTNT - Free Report) has given investors fresh reason to pay attention after raising its full-year 2026 guidance on the back of accelerating firewall refresh cycles and surging SASE adoption. The upgraded outlook, delivered alongside second-quarter results, points to durable, broad-based demand across the company's security fabric, and the fundamentals underpinning that demand suggest the stock deserves a place in growth-oriented portfolios in the near term.

Fortinet shares have gained 103.9% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 86.2% and 17.7%, respectively. The rally is best viewed as the market catching up to accelerating billings and guidance rather than a stretched move, making the current entry point still reasonable for new positions.

FTNT’s 6-Month Price Performance
Image Source: Zacks Investment Research

Guidance Raised Across the BoardFollowing second-quarter 2026 results that topped the high end of prior guidance, management lifted full-year revenue guidance to $8.02-$8.18 billion, implying roughly 19% year-over-year growth, compared with the prior outlook of $7.71-$7.87 billion. Billings are raised to $9.35-$9.55 billion, service revenues are projected at $5.18-$5.22 billion, and non-GAAP EPS is anticipated between $3.41 and $3.47. Non-GAAP operating margin guidance stands at 35-37%, with non-GAAP gross margin guided to 79-81%.

The Zacks Consensus Estimate for 2026 earnings stands at $3.40 per share, implying 23.19% year-over-year growth.

For the third quarter, the company guided revenues to be in the range of $2.01-$2.10 billion and non-GAAP EPS to be between 83 cents and 87 cents. Infrastructure investment guidance for the full year was set at $350-$550 million, while full-year cash taxes are expected between $400 million and $450 million. This breadth of upward revisions across revenue, billings, margin and earnings metrics signals management's confidence that current demand trends are structural rather than a one-quarter pop.

SASE Firewall Convergence Driving the CycleThe core fundamental thesis rests on Fortinet's "SASE Firewall" positioning — the convergence of firewall, SD-WAN and SASE functionality on a single FortiOS operating system powered by purpose-built FortiASIC silicon. This architecture lets customers deploy consistent security policy on-premises, at the edge, or in the cloud without stitching together multiple vendors. That convergence was extended in late July with the launch of the FortiGate 1200G series paired with FortiSASE Outpost, which delivers up to 397 Gbps of firewall throughput and brings cloud-delivered SASE services into customer-controlled environments, targeting the sovereignty, latency and compliance needs of AI-era, encrypted-traffic workloads. Fortinet was also recognized as a Challenger in the 2026 Gartner Magic Quadrant for SASE Platforms, reinforcing its expanding footprint in that category.

AI Woven Into the Security FabricArtificial intelligence is increasingly central to Fortinet's product roadmap and go-to-market motion. FortiOS 8.0, introduced at Fortinet Accelerate 2026, added Secure AI Controls for shadow-AI visibility and fabric-based AI agents. In June, the company launched FortiSOC, a cloud-delivered security operations platform that embeds agentic AI to autonomously investigate and correlate alerts and recommend or execute response actions under analyst oversight. In mid-July, Fortinet expanded FortiEndpoint with new AI-era capabilities, consolidating AI visibility and governance, endpoint detection and response, and data security into one agent, console and license, with availability expected in the third quarter. On the infrastructure side, Fortinet deepened integration with NVIDIA to accelerate its FortiAIGate solution, protecting AI workloads, data and autonomous agents across data centers and cloud environments. Management has also credited internal AI initiatives with contributing to record non-GAAP operating margin, pointing to an efficiency tailwind alongside the revenue opportunity.

Silicon Roadmap Strengthens the MoatIn late July, Fortinet announced a strategic collaboration with Intel to develop its next-generation Fortinet Security Processor 6, combining Fortinet's purpose-built ASIC expertise with Intel's advanced design, packaging and manufacturing capabilities. This is expected to advance Fortinet's long-term ASIC roadmap while strengthening supply chain resilience and geographic diversification — a fundamental input into the performance and cost advantages that differentiate FortiGate appliances from software-only competitors.

Valuation and Competitive LandscapeFrom a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 44.39, higher than the sector's average of 21.53. The company carries a Value Score of F, though the premium is justified by Fortinet's superior margin profile, raised guidance trajectory and expanding AI- and SASE-driven total addressable market.

FTNT’s Valuation
Image Source: Zacks Investment Research

Competitively, Fortinet operates alongside Palo Alto Networks (PANW - Free Report) , Qualys (QLYS - Free Report) and Cisco (CSCO - Free Report) . Palo Alto Networks remains the largest platform rival, competing directly in firewall and SASE; Cisco leverages its networking incumbency to bundle security, competing with Fortinet's converged approach; and Qualys, more focused on vulnerability and exposure management, overlaps with Fortinet's broader security operations ambitions. Against Palo Alto Networks, Cisco and Qualys, Fortinet's ASIC-driven cost structure remains a differentiator.

ConclusionFortinet's raised 2026 guidance reflects genuine fundamental momentum — a firewall refresh cycle, expanding SASE convergence, deepening AI integration across SecOps and endpoint products and a strengthening silicon supply chain via Intel. While valuation is undeniably rich, the depth and breadth of Fortinet's product-led growth drivers support a constructive near-term stance on the stock. Fortinet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

SAN DIEGO, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of current, long-term shareholders of Firefly Aerospace Inc. (NASDAQ: FLY), Flywire Corporation (NASDAQ: FLYW), Fortinet, Inc. (NASDAQ: FTNT), and Compass Diversified Holdings (NYSE: CODI) against certain of their officers and directors for alleged breaches of fiduciary duty.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Fortinet (FTNT - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Fortinet currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for FTNT that show why this network security company shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For FTNT, shares are up 6.29% over the past week while the Zacks Security industry is up 4.14% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.06% compares favorably with the industry's 6.06% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Fortinet have increased 47.79% over the past quarter, and have gained 74.92% in the last year. On the other hand, the S&P 500 has only moved 7.68% and 23.46%, respectively.

Investors should also take note of FTNT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now FTNT is averaging 5,527,341 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with FTNT.

Over the past two months, 13 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost FTNT's consensus estimate, increasing from $3.14 to $3.40 in the past 60 days. Looking at the next fiscal year, 13 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that FTNT is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Fortinet on your short list.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends Fortinet (FTNT - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this network security company is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Fortinet is 42.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.6% this year, crushing the industry average, which calls for EPS growth of 9.4%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Fortinet has an S/TA ratio of 0.74, which means that the company gets $0.74 in sales for each dollar in assets. Comparing this to the industry average of 0.44, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Fortinet looks attractive from a sales growth perspective as well. The company's sales are expected to grow 18.5% this year versus the industry average of 18.3%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Fortinet. The Zacks Consensus Estimate for the current year has surged 6% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Fortinet a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Fortinet well for outperformance, so growth investors may want to bet on it.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.

FTNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FTNT has a Growth Style Score of A, forecasting year-over-year earnings growth of 15.2% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $3.18 per share. FTNT also boasts an average earnings surprise of +20.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FTNT should be on investors' short list.

Key Takeaways The AI revolution is causing cybersecurity threats to proliferate.FTNT has seen a 60% surge in enterprise demand over $1 million.A pullback offers investors an opportunity to get positioned. Fortinet Company OverviewZacks Rank #1 (Strong Buy) company Fortinet ((FTNT - Free Report) ) is a cybersecurity leader, driving the convergence of networking and security. The Sunnyvale, CA-based company provides integrated security solutions to enterprises, service providers, and government entities across 100 countries. Through its products and subscription services, Fortinet provides protection against dynamic security threats while simplifying IT security infrastructure. Its solutions defend against multiple attack categories without impacting network performance, enabling customers to implement security policies on traffic between internal and external networks. Simply put, Fortinet protects organizations from digital threats, including hackers and computer viruses.

AI: A Massive Cybersecurity Catalyst The current artificial intelligence buildout is unprecedented in terms of size and scope. In fact, a staggering 50% of Q1 2026 GDP growth can be attributed to massive CAPEX spending by big tech companies like Alphabet ((GOOGL - Free Report) ), Meta Platforms ((META - Free Report) ), and Microsoft ((MSFT - Free Report) ).

While the AI revolution has bolstered the economy and produced many winners in AI infrastructure and semiconductors, it also comes with its own set of problems. One of the least-discussed downsides of AI technology is that hackers and bad actors can weaponize it. In other words, as AI proliferates throughout the economy, so does the number of threats from automated, high-frequency vectors.

The increase in threats is a massive long-term catalyst for cybersecurity leaders like Fortinet. Below are three ways Fortinet fights AI-powered security threats:

·       Securing AI Data Centers: Fortinet’s technology helps to run AI applications that require extreme network speeds. Fortinet’s custom-built computer chips (ASICs) and partnership with AI leader NVIDIA ((NVDA - Free Report) ) give the company a competitive edge.

·       Fighting AI-Powered Attacks: FortiAI, Fortinet’s in-house machine learning engine, helps to stop the faster, smarter attacks that are synonymous with the latest AI technology.

·       Generative AI Assistant: FortiAI-Assist helps save customer time and streamline IT workloads by automating security alert investigations and troubleshooting network errors.

Fortinet: Steady, Reliable Earnings GrowthFortinet’s success securing large enterprise contracts through the first quarter of 2026 demonstrates strong market validation and creates predictable revenue streams. The company reported that deals of $1 million or more have increased by 60%. For this reason, it is no surprise that the company has consistently grown its top-and bottom-line financials for years. Zacks Consensus Estimates suggest that revenues will in the double-digits through 2027.

Image Source: Zacks Investment Research

Meanwhile, Fortinet consistently beats Wall Street expectations. Over the past four quarters, the company has delivered an average EPS surprise of 17.46%.

Image Source: Zacks Investment Research

FTNT: Powerful Price Action & a Bullish ChartFTNT shares have exhibited extreme power. Year-to-date, FTNT is  up 91.2% while the S&P 500 Index is  up 7.8%.

Image Source: Zacks Investment Research

Additionally, while the Nasdaq 100 Index ETF ((QQQ - Free Report) ) is nearly in correction territory and is well below its 10-week moving average, FTNT is finding support there. The first retreat to the moving average after a blistering move higher presents investors with an attractive reward-to-risk profile.

Image Source: TradingView

Bottom Line

As the age of artificial intelligence takes the world by storm, Fortinet’s cybersecurity solutions are in high demand. With expanding enterprise contracts and consistent earnings performance, FTNT remains a standout leader in its industry.

Key Takeaways Fortinet raised 2026 outlook after exceeding guidance for revenue, billings, margin and EPS.FTNT reported SASE Firewall business growth of 34% as customers sought integrated security.Fortinet highlighted AI security demand, including 25% growth in AI-driven security operations billings. Fortinet, Inc. (FTNT - Free Report) highlighted accelerating demand for integrated cybersecurity platforms during its second-quarter 2026 earnings call, with management focusing on the expansion of its SASE Firewall strategy, AI-driven security needs, and customer consolidation trends.

The company raised its 2026 outlook after exceeding the high end of guidance across revenues, billings, operating margin and earnings per share. Management emphasized long-term growth opportunities tied to AI infrastructure, networking and security convergence.

Fortinet Expands Margins and Cash FlowFortinet reported second-quarter non-GAAP earnings per share of 90 cents, which exceeded the Zacks Consensus Estimate of 75 cents. FTNT’s revenues of $2.05 billion increased 26% year over year and surpassed the Zacks Consensus Estimate by 8.62%. 

The company posted a non-GAAP operating margin of 38% and free cash flow of $966 million. Management attributed margin strength to revenue growth, cost discipline and internal efficiency initiatives.

Fortinet also repurchased shares during the quarter. Management said disciplined capital allocation remains part of its long-term approach while maintaining investment in technology and infrastructure.

Fortinet Advances SASE Firewall StrategyFortinet said its SASE Firewall approach is becoming a key growth driver as customers seek integrated security across data centers, cloud environments and remote users. CEO Ken Xie said the company’s unified FortiOS platform differentiates its offering by combining firewall, SD-WAN and SASE capabilities.

The company reported SASE Firewall business growth of 34% in the quarter. Xie said customers are increasingly seeking local processing, data privacy controls and flexible deployment options rather than relying only on cloud-based security models.

Fortinet also launched FortiGate 1200G with FortiSASE Outpost, combining local enforcement with cloud-delivered security. Management positioned the product as addressing sovereignty, performance and AI infrastructure requirements.

FTNT Sees AI Security MomentumFTNT highlighted AI adoption as a major factor reshaping cybersecurity demand. Management said organizations require stronger protection for AI workloads, increased visibility into AI-related traffic and improved security operations capabilities.

CFO Christiane Ohlgart said AI-driven security operations billings grew 25%, supported by customers consolidating multiple point products onto Fortinet’s broader platform. The company also expanded FortiSOC and FortiEndpoint offerings during the quarter.

Management noted AI infrastructure expansion is creating demand for high-performance security solutions. Fortinet cited customer wins involving AI data center environments where its processing capabilities supported large-scale deployments.

Fortinet Raises 2026 OutlookFortinet increased its full-year 2026 revenue guidance to $8.02 billion to $8.18 billion, suggesting 19% growth at the midpoint. Service revenue guidance was raised to $5.18 billion to $5.22 billion, while billings guidance moved to $9.35 billion to $9.55 billion.

For the third quarter of 2026, management expects revenue between $2.01 billion and $2.10 billion and non-GAAP earnings per share of $0.83 to $0.87. The company expects non-GAAP operating margin of 35% to 37%.

Ohlgart said improved service revenue trends, strong product momentum and operational execution supported the higher outlook. Management expects service growth to improve as accelerated product revenue contributes to future recurring revenue expansion.

FTNT Analysts Probe Growth DurabilityFTNT faced analyst questions about whether recent product growth reflected sustainable demand or temporary factors. Xie said growth is being driven by long-term market changes, including AI traffic growth, infrastructure upgrades and replacement opportunities.

A Barclays analyst asked about pricing actions and product growth assumptions. Management said pricing adjustments were designed to maintain gross margins and that product mix changes also contributed to higher average selling prices.

A Morgan Stanley analyst asked about AI-driven customer refresh cycles. Xie said the company is seeing broader infrastructure replacement opportunities rather than only traditional refresh activity, supported by demand for higher-performance security platforms.

FTNT Maintains Strategic FocusFTNT’s management emphasized platform integration, AI security and SASE adoption as central priorities following the quarter. Executives highlighted customer demand for simplified security architectures that combine multiple functions into a single platform.

The company also pointed to continued opportunities in operational technology security, sovereign SASE deployments and AI-related infrastructure protection as areas supporting future expansion.

Zacks Rank and Style ScoresFortinet carries a Zacks Rank #3 (Hold), indicating the stock’s earnings estimate revisions provide a neutral signal under the Zacks Rank system. The Zacks Rank can change as analysts update estimates following new company developments and quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has a Growth Score of A and Momentum Score of B, while its Value Score is F and VGM Score is C. Zacks Style Scores are designed to complement the Zacks Rank, with higher grades representing stronger characteristics within each investment style category.

Fortinet Inc (NASDAQ:FTNT) on Wednesday reported better-than-expected second-quarter financial results.

Fortinet reported second-quarter revenue of $2.05 billion, up 26% year-over-year. The revenue total beat a Street consensus estimate of $1.89 billion, according to data from Benzinga Pro. Earnings of 90 cents per share beat a Street consensus estimate of 75 cents per share.

“We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era,” Fortinet CEO Ken Xie said.

The company sees third-quarter revenue in a range of $2.01 billion to $2.10 billion, higher than a current Street estimate of $1.95 billion. Earnings per share are expected to be in a range of 83 cents to 87 cents per share for the third quarter, versus a Street estimate of 76 cents per share.

The company raised its full-year guidance and now expects earnings per share in a range of $3.41 to $3.47, up from a prior range of $3.10 to $3.16. The current Street estimate is $3.16 according to Benzinga Pro.

Fortinet also raised its full-year revenue guidance, now expecting $8.02 billion to $8.18 billion. The prior estimated range was $7.71 billion to $7.87 billion. The Street estimates full-year revenue at $7.81 billion.

Fortinet shares jumped 10.4% to $169.15 in pre-market trading.

These analysts made changes to their price targets on Fortinet following earnings announcement.

BTIG analyst Gray Powell maintained the stock with a Buy and raised the price target from $186 to $203. Barclays analyst Saket Kalia maintained the stock with an Equal-Weight rating and raised the price target from $170 to $190. Considering buying FTNT stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Fortinet, Inc. (FTNT) Q2 2026 Earnings Call July 29, 2026 4:30 PM EDT

Company Participants

Anthony Luscri - Vice President of Investor Relations
Ken Xie - Co-Founder, Chairman & CEO
Christiane Ohlgart - Chief Accounting Officer, CFO and Principal Financial & Accounting Officer
John Whittle - Chief Operating Officer

Conference Call Participants

Saket Kalia - Barclays Bank PLC, Research Division
Shaul Eyal - TD Cowen, Research Division
Gray Powell - BTIG, LLC, Research Division
Keith Bachman - BMO Capital Markets Equity Research
Meta Marshall - Morgan Stanley, Research Division
Fatima Boolani - Citigroup Inc., Research Division
Gabriela Borges - Goldman Sachs Group, Inc., Research Division
Junaid Siddiqui - Truist Securities, Inc., Research Division
Joseph Gallo - Jefferies LLC, Research Division

Presentation

Operator

Hello, and welcome to the Fortinet's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that this call is being recorded. I would now like to hand the call over to Anthony Luscri, Vice President of Investor Relations. Please go ahead.

Anthony Luscri
Vice President of Investor Relations

Thank you. Good afternoon, and thank you for joining us on today's conference call to discuss Fortinet's Second Quarter 2026 financial results. Joining me on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; Christiane Ohlgart, our CFO; and John Whittle, our COO. Ken will begin our call today by providing a high-level perspective on our business, Christiane will then review our financial results for the second quarter of 2026 before providing guidance for the third quarter and updating the full year. We will then open the call for questions.

During the Q&A session, we ask that you please limit yourself to one question and one follow-up question to all. Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual

July 29 (Reuters) - Cybersecurity firm Fortinet (FTNT.O), opens new tab on Wednesday lifted its annual revenue forecast after reporting strong second-quarter ​results, signaling strong enterprise spending on ‌its services amid rising data security incidents.

Companies are ramping up data security budgets to tackle increasingly ​sophisticated ransomware attacks and other threats.

Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.

The ​California-based company now projects annual revenue between $8.02 ⁠billion and $8.18 billion, compared with its ​previous expectation of $7.71 billion to $7.87 billion.

It expects ​annual adjusted earnings per share between $3.41 and $3.47, above its earlier expectation of $3.10 to $3.16.

Third-quarter revenue is expected to be between $2.01 ​billion and $2.1 billion, above analysts' expectation of $1.95 billion, ​according to data compiled by LSEG.

The adjusted profit ‌per ⁠share is expected between 83 cents and 87 cents for the quarter, above esimate of 76 cents.

Fortinet, which offers integrated cybersecurity products including ​firewalls, intrusion ​prevention ⁠systems and cloud-based threat protection, is transitioning to a subscription-led model ​and integrating generative AI across ​its ⁠products.

Revenue for the second quarter was $2.05 billion, compared with estimates of $1.89 billion.

The adjusted earnings ⁠per ​share stood at 90 cents for ​the quarter ended June 30, compared with estimates of 75 cents.

Reporting ​by Arunesh Sinha; Editing by Sahal Muhammed

Our Standards: The Thomson Reuters Trust Principles., opens new tab